Barry Diller told investors that the transition of Newsweek from print to digital-only will be painful
Barry Diller, the chief at IAC/InterActiveCorp told investors Wednesday that killing Newsweek's print edition is a "painful process" and he has "no stars in his eyes" about its future as an online publication.
Investors questioned Diller during the third-quarter earnings call, asking how the print death of the 80-year-old newsweekly at the end of the year would affect the health of the Newsweek/Daily Beast business.
"We have no stars in our eyes," Diller said, adding that he is still considering the publication's continued losses a worthy investment. "Our plans for next year or any year forward are not going to relate in any material way to the results for Newsweek."
"We're not projecting that it'll have X or Y subscribers," he added.
"We have made the tough and right decision to cease printing," said Diller, who owns 80 percent of Newsweek/Daily Beast. "We know the results of that are going to dramatically decrease losses in the future — dramatically."
He said that the magazine's prospects have been improved by ending the print edition, which accounted for a $25-$30 million loss this year.
"Always in my life I have lived under a world saying, 'you lost money' and I said 'yes, we've invested money,'" Diller said. "I've had it said in an endless number of situations that, 'oh, we lost money' and I said 'no, no, no, we are investing money.' It's not as if we are taking money out and dropping it in an ocean and seeing it sink."